Developing Mexican Silver-Zinc Production
XTIERRA Inc. (TSXV: "XAG") is a Toronto-based and TSX Venture Exchange (TSXV) listed resource development company.
Xtierra plans to become a mid-tier producer of silver and base metals through the development of its Bilbao project located in the Central Mexican Mineral Belt in the State of Zacatecas, as well as through exploration and acquisition opportunities.
Xtierra commenced a Feasibility Study of its 100% owned Bilbao project in April 2009, on a phased basis, with the first phase completed in December 2009. The First Phase was focused primarily on the achievement of a flow sheet and extraction process providing acceptable recoveries for the near surface oxide portion of the mineral resource as well as preliminary engineering studies, rock mechanics and environmental studies. Results indicate acceptable metal recoveries can be achieved. Xtierra is continuing with metallurgical optimization through further test work and pilot plant testing together with engineering design studies for a 3,000 tpd open pit mine.
In July, 2010, Xtierra announced that it had retained Dowding, Reynard and Associates (DRA), a recognized leader in the field of mine design, mine engineering, mineral process design, project management and mine construction to complete the feasibility study on Bilbao. DRA has particular expertise in Process Plant Design, Metallurgical Process Engineering, and Metallurgical Consulting and will be intimately involved in the preparation for and commissioning and operation of the pilot plant designed to test the recovery process for the near surface oxide ores at Bilbao.
Southampton Associates completed an initial independent resource estimate on the Bilbao deposit in November 2008 compliant with NI 43-101. A new independent resource estimate has been prepared by Richard T.G. Parker, C.Eng. dated February 16, 2010 (see "Mineral Reserves & Resources".)
Pursuant to an earlier financing agreement between Xtierra and Pacific Road Resource Funds ("PRRF"), PRRF has an option to provide up to US$32.5 million in project financing for both the Bilbao and Laguna projects.
The Laguna project is subject of a bankable feasibility study completed by Micon International which contains an estimated mineral reserve of 6,799,000 t, containing an average of 57.92 g/t silver, 0.31 g/t gold and 328.92 g/t mercury.
Xtierra has entered in to an Option & Sale Agreement with respect to the Laguna project with Indo Gold Ltd. of Brisbane, Australia who are conducting preliminary due diligence prior to an election to bring the project into production.
Pinos Gold Project - Xtierra commenced initial drilling of its exciting new gold project located in the historic Pinos gold district of Zacatecas in early January 2010.
